- The UP government has removed registration charges on every hybrid vehicle until 2025.
- By 2030,Tata Motors is targeting 30-40 percent of sales from electric and rival Maruti targeting 15 percent sales.
The government of Uttar Pradesh’s recent decision to offer incentives for hybrid vehicles has vexed electric vehicle manufacturers. The decision has created a rift between the car companies such as Tata Motors who are now completely focused on manufacturing EVs. On the other hand, Maruti Suzuki and Toyota are concentrating on the growth of hybrid cars.
As per media reports, sales of EVs plummeted to 13.5 percent and witnessed a slight drop in May. In the January-June period, domestic sales reduced to 20 percent growth, which is around 46,845 units. The statistics reveal that growth is down as compared to 135 percent escalation in the same period last year that forced Tata and other firms to revamp their expectations. Highlighting the impact, union commerce minister Piyush Goyal stated that the matter is of serious concern.
Mahindra and Tata are yet to reveal their official statement and strategies to the media. In fact, it was also reported that the UP government held a meeting with several car-makers to form strategies to promote and boost growth of EVs. The vehicle registration data collated by the Federation of Automobile Dealers Associations (FADA) has mentioned that electric car sales declined to 6,894 units in June from the same month last year, reports ET.
A senior executive of an EV company who wishes to be unnamed has told ET, "The government could have never transitioned from BSIV to BSVI, if they had taken into resistance from some players in the industry. If we are to move towards carbon neutrality by 2070, we have to go all electric. Such ad hoc decisions by the state government, which are not aligned with the objectives of the Centre, will only slow down the move to zero emission mobility."
Hybrid vehicles, which are having a market share of 2.3 percent in June are powered by both batteries and fossil fuels. The UP government has removed registration charges on every hybrid vehicle until 2025. Reports also state that the government is expecting 20 percent EV penetration by 2030 out of which Tata itself is targeting 30-40 percent of sales from electric. Competitor Maruti, which is all set to unleash its first EV in the market this year, expecting 15 percent of sales from those vehicles.
